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3rd question official answer
Correct Answer: C
The second paragraph states: "The seller is under no obligation to use the BDs this way, however, and can spend them elsewhere or simply save them as credits for later use." Thus C is the correct response. Answer A is incorrect because according to the second paragraph, "There is, however, little incentive to save, because, as with most barter systems, the currency does not generate interest." Choice B is wrong because the opening sentence of the second paragraph states that "virtually all governments consider bartering by businesses identical to cash transactions, and taxes need to be paid accordingly." There is no indication that barter credits - BDs in this case - are not taxed until they are used. For answer D, nowhere in the passage does it state that BDs can be exchanged or redeemed for traditional currency in some countries. And E is contrary to the correct answer, which is supported by the statement in the second paragraph, which makes it clear that BDs can be spent "elsewhere," and not necessarily with the individual or business from whom the BDs were received.
Correct Answer: C
The second paragraph states: "The seller is under no obligation to use the BDs this way, however, and can spend them elsewhere or simply save them as credits for later use." Thus C is the correct response. Answer A is incorrect because according to the second paragraph, "There is, however, little incentive to save, because, as with most barter systems, the currency does not generate interest." Choice B is wrong because the opening sentence of the second paragraph states that "virtually all governments consider bartering by businesses identical to cash transactions, and taxes need to be paid accordingly." There is no indication that barter credits - BDs in this case - are not taxed until they are used. For answer D, nowhere in the passage does it state that BDs can be exchanged or redeemed for traditional currency in some countries. And E is contrary to the correct answer, which is supported by the statement in the second paragraph, which makes it clear that BDs can be spent "elsewhere," and not necessarily with the individual or business from whom the BDs were received.
25 Dec 2019, 21:31
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2nd question official explanation
Correct Answer: A
The parenthetical note in the first paragraph makes clear that traditional currency (the ruble) was used at the same time that people were bartering. The currency "stretched" to fit the item being sold, making the currency unusually flexible. Therefore, A is the correct answer. B is incorrect because the problem of determining the value of goods is discussed in the third paragraph, long after any mention of the former Soviet Union. While farmers were mentioned in the first paragraph, they are discussed in relation to the Depression, not the former Soviet Union, making C wrong. D is incorrect because while the first paragraph does mention the use of traditional currency for the purchase of staple goods and luxury items, it never says that people bartered for these things. The passage never states that bartering was taxed in the former Soviet Union, which is only mentioned in the first paragraph; thus E is also wrong.
Correct Answer: A
The parenthetical note in the first paragraph makes clear that traditional currency (the ruble) was used at the same time that people were bartering. The currency "stretched" to fit the item being sold, making the currency unusually flexible. Therefore, A is the correct answer. B is incorrect because the problem of determining the value of goods is discussed in the third paragraph, long after any mention of the former Soviet Union. While farmers were mentioned in the first paragraph, they are discussed in relation to the Depression, not the former Soviet Union, making C wrong. D is incorrect because while the first paragraph does mention the use of traditional currency for the purchase of staple goods and luxury items, it never says that people bartered for these things. The passage never states that bartering was taxed in the former Soviet Union, which is only mentioned in the first paragraph; thus E is also wrong.
25 Dec 2019, 21:32
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4th question official explanation
Correct Answer: B
The first paragraph of the passage discusses traditional bartering, and this is contrasted with the remainder of the passage, which discusses modern-day bartering. The ramifications of modern bartering, especially interest and taxation issues, are described in the second and third paragraphs. Thus B is the correct response. Answer A is incorrect because the author does not criticize governments for how they tax bartering. Because the author does not try to prove to the reader that bartering is just as legitimate as other types of transactions, answer C is wrong. D is incorrect for the author never categorizes any of the issues discussed as being either "for" or "against" the use of bartering. While the author might feel that bartering will never become as popular as other transactions, or that bartering might become as popular without first needing to resolve the tax issues, we cannot say for sure from this passage alone, making E also incorrect.
Correct Answer: B
The first paragraph of the passage discusses traditional bartering, and this is contrasted with the remainder of the passage, which discusses modern-day bartering. The ramifications of modern bartering, especially interest and taxation issues, are described in the second and third paragraphs. Thus B is the correct response. Answer A is incorrect because the author does not criticize governments for how they tax bartering. Because the author does not try to prove to the reader that bartering is just as legitimate as other types of transactions, answer C is wrong. D is incorrect for the author never categorizes any of the issues discussed as being either "for" or "against" the use of bartering. While the author might feel that bartering will never become as popular as other transactions, or that bartering might become as popular without first needing to resolve the tax issues, we cannot say for sure from this passage alone, making E also incorrect.
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